Requirements: Mandatory for all companies.

CA Assembly Bill 2883 (AB 2883): This legislation applies to all California workers’ comp insurance policies that will be in effect on or after Jan. 1, 2017.  AB 2883 was designed to target situations where some businesses have been claiming excessive numbers of employees as officers in order to avoid insuring them to reduce their premiums.

AB 2883 causes the following changes:

Any individual (officer, director, general partner, LLC Member) electing to exclude themselves from CA work comp coverage must submit an execute waiver to their insurance carrier.

ALL corp officers, directors and partners are required to be covered under the company’s work comp policy unless they meet a new “narrower” definition of excluded employee. Under this new definition, officers, directors, and partners can only opt out of coverage by signing a waiver under penalty of perjury and submitting the waiver to their work comp carrier.


Corp Officers & Directors of quasi-public or private corporations must now own 15% or more of the issued and outstanding stock of a corporation to elect exclusion from the work comp insurance policy.

Limited Liability Companies:

General partners or managing members may elect to exclude themselves from California workers’ compensation coverage if the entity is a partnership or limited liability company.

Non-For-Profit Board Members who do not receive a salary or form of compensation may exclude themselves from a work comp policy.  However, Board Members that presently earn a salary must be included on the work comp policy.

Please visit the CA Legislative Info website by clicking here for the entire text of Assembly Bill 2883.

California Corp Officers, Partners,  and LLC Members who are included on a California workers compensation policy must utilize a minimum payroll of $48,100 and a maximum payroll of $122,200. (as of 1/1/17)

What is the fine/penalty for not carrying workerscomp in California?

A: Failing to buy workers’ compensation insurance in California is a criminal offense.

Section 3700.5 of the California Labor Code states it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both.

Buy California Workers Compensation.

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